Memphis City Council Demands $50 Million Cut in Mayor Herenton's Budget

The Memphis City Council is pressing Mayor Willie Herenton's administration to make a $50 million cut in the proposed operating budget, citing a lack of school funding. The council's operating budget committee has been debating over the mayor's proposed budget, which does not include $57 million in school funding. The administration has until May 18 to make the necessary cuts. Councilman Bill Morrison proposed the reduction to gain a better understanding of its impact on city divisions. "I am certainly not saying the council gives up any control of this budget," he said.

Key Takeaways:

• The Memphis City Council is demanding a $50 million cut in the proposed operating budget due to the lack of school funding.
• The cut is a result of the council's operating budget committee's debate over the mayor's proposed budget, which does not include $57 million in school funding.
• The administration has until May 18 to make the necessary cuts, after which the council will review and potentially make further changes.
• Councilman Bill Morrison sponsored the motion to make the cuts, citing the need to understand their impact on city divisions.
• Chief Administrative Officer Keith McGee warned that such a steep cut could have an adverse impact on city services.
• The proposed operating budget is $617.4 million, and a $50 million cut would reduce it to $567.4 million.
• Police and Fire services, accounting for 62% of the proposed operating budget, may see some reductions.
• The council has already reduced its contribution to Memphis City Schools from 83 cents of the city tax rate to 19 cents, slashing some $66 million.
• The city has roughly $89 million in reserves built up, with $27 million to $32 million available for use without jeopardizing its credit rating.

Statistics:

• $57 million: the amount of school funding cited as missing from the proposed operating budget.
• 62%: the percentage of the proposed operating budget allocated to Police and Fire services.
• $617.4 million: the proposed operating budget.
• $567.4 million: the reduced operating budget with a $50 million cut.
• $89 million: the total amount of reserves built up by the city.
• $27 million to $32 million: the range of available reserves for use without jeopardizing the city's credit rating.
• 125: the number of vacant positions eliminated in the mayor's proposed budget.

Sources:

• "City Council members demand $50 million cut from Herenton's budget."

-- Amos Maki, The Commercial Appeal (Copyright (c) 2009, The Commercial Appeal, Memphis, Tenn. Distributed by McClatchy-Tribune Information Services.)